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Retailers already struggling in a tough economic climate are bracing for a slow holiday season. Analysts suggest some companies that don't perform well might be forced into bankruptcy in the face of NRF's predicted meager 2.2% holiday sales growth. Many retailers are preparing by controlling costs -- J.C. Penney's CEO says the company is in a good position heading into the holidays and a Macy's spokesman was also optimistic.

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Increased competition from online retailers, price wars and uncertain consumer confidence are expected to make for a tough and highly promotional holiday season for Canada's retailers. Retail sales are forecast to rise 3.5% in the fourth quarter; last year they rose 2.8%.

Analysts likely will use September's sales figures to make predictions about the holiday season. About 30 retailers are expected to report their numbers Thursday. Best Buy is one retailer that has seen a turnaround in terms of consumer demand, but the company still will continue to focus on price for the holiday season.

Restaurant chains with most of their locations in malls and retail centers are more susceptible to traffic declines over the holiday season. These include California Pizza Kitchen, Cheesecake Factory Inc., Red Robin Gourmet Burgers, Kona Grill, P.F. Chang's China Bistro and Ruby Tuesday.

Retailers already struggling in a tough economic climate are bracing for a slow holiday season. Analysts suggest some companies that don't perform well might be forced into bankruptcy in the face of NRF's predicted meager 2.2% holiday sales growth. Many retailers are preparing by controlling costs -- J.C. Penney's CEO says the company is in a good position heading into the holidays and a Macy's spokesman was also optimistic.

An NRF forecast revealed today that 2008 holiday sales are expected to grow at the slowest rate in six years. The 2.2% expected rise would mean sales will hit $470.4 billion, but the growth rate is half the average rate for November and December over the last decade. "We expect consumers to be frugal this season and less willing to splurge on discretionary items," Rosalind Wells, NRF's chief economist, said.